The weekend’s re-escalation in Ukraine has sent gold popping$10 (and back above its 200DMA) and FX carry (and thus US equities) sliding in the early overnight trading. With Japan out (and Europe set for another holiday) volume are, and will likely remain, low. Critically, USDJPY is back under 102, even as Japan’s central bank governor proclaims:
- *KURODA SAYS PRIVATE ECONONISTS UNDERESTIMATE JAPAN, CNBC SAYS
Which means Nikkei futures are also lower (and Chinese stocks are falling on the back another weak PMI print). Treasury futures are bid suggest 2bps more yield compression.
USDJPy and therefore US equities arefading (back under 102)
Gold is jumping back over $1300 and its 200DMA…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1iglqyt Tyler Durden